Ethereum Bullish Breakout Before Bitcoin Halving Signals Epic Altcoin Season Ahead
Elena R27 Feb 20241 min read
For the first time in more than 25 months, Ethereum’s (ETH) price rallied above $3,270 on Tuesday, following a bullish close last week. The heightened demand for digital assets from retail traders and institutional investors has triggered an early parabolic bull run.
As a result, most analysts believe the possibility of a mega crypto bull run has significantly increased. Moreover, Bitcoin price is less than 30 percent away from its all-time high (ATH), with the fourth halving yet to take place. Additionally, crypto cash inflow has escalated over the past four weeks despite Grayscale’s notable GBTC outflow.
Ethereum Gains Just Began
It is safe to assume that Ethereum price action will closely mirror that of Bitcoin in the confirmed bull cycle, as observed in the past few years. However, it is worth noting that Ethereum price will register higher gains than Bitcoin due to the diminishing returns effect. Moreover, the ETH price last had such an explosive monthly candle during the 2021 bull run.
Altcoin Season Ahead
The total altcoin market capitalization experienced a successful breakout and retest in the past few months. With the Bitcoin price nearing the local top, the distribution of profits to the altcoin market will expedite in the coming months. As a result, small and low-cap altcoins, including meme coins, will register further gains in the near term.
According to a famous crypto trader, Jelle, on the X platform (@CryptoJelleNL), investors should now focus on spot holding to avoid being rekt through leverage trading.
From a technical standpoint, Ethereum bulls have the upper hand after the weekly Relative Strength Index (RSI) rallied above the 70 level for the first time in over two years. Meanwhile, the Ethereum price aims to reach $3,750 in the near term, coinciding with the 3.618 Auto Fib Retracement.
